Welcome to Mathematical Economics (currently ECON 300 but eventually ECON 384). Below you will find links to course reading materials, interesting links, and other information I’ve pulled together from the Internet. If you have anything you think would be worth adding, please let me know.

You can find me in my office on: Tuesday 2:30pm-5:00pm and Thursday 2:30pm-5:00pm; and online Wednesday between 2pm-3pm. Office hours are occasionally rescheduled due to conflicts. Please try to make an appointment before coming by.

Link to course on Canvas

Pemberton & Rau Exercise Solutions

Pemberton & Rau Problem Solutions

### Section 1: Linear equations: slope/intercept, solving systems of equations, inequalities

- Pemberton & Rau: Chapter 1 & 2
- Core Econ (Ch 8.4) Leibniz – Market Supply
- Core Econ (Ch 8.4) Leibniz – Market Equilibrium
- Core Econ (Ch 8.6) Leibniz – Shifts in Demand and Supply
- Summation – Khan Academy

### Section 2: Sets and functions, quadratics and logs, series.

Lecture 2A: Mathematica (nb)

Lecture 2B: Mathematica (nb)

- Pemberton & Rau: Chapter 3, 4, & 5
- Core Econ (Ch 3.6) Leibniz – Modeling Technological Change
- Core Econ (Ch 11.8) Leibniz – Price Bubbles

### Section 3: Differentiation: first, second, product, quotient rules.

Lecture 3a: Mathematica (nb)

Lecture 3b: Mathematica (nb)

- Pemberton & Rau: Chapter 6 & 7
- Core Econ (Ch 3.1) Leibniz – Average and Marginal Productivity
- Core Econ (Ch 3.1) Leibniz – Diminishing Marginal Productivity
- Core Econ (Ch 7.3) Leibniz – Average and Marginal Cost Curves
- Core Econ (Ch 7.5) Leibniz – Profit Maximizing Price
- Core Econ (Ch 7.6) Leibniz – Marginal Revenue and Marginal Cost
- Core Econ (Ch 7.8) Leibniz – Elasticity of Demand

- Core Econ (Ch 2.7) Leibniz – The Production Function
- Core Econ (Ch 3.6) Leibniz – Modeling Technological Change (same as above)
- Core Econ (Ch 6.7) Leibniz – Profit Wages and Effort
- Core Econ (Ch 7.5) Leibniz – Profit Maximizing Price (same as above)
- Core Econ (Ch 7.8) Leibniz – Elasticity of Demand (same as above)
- Core Econ (Ch 8.4) Leibniz – Market Supply Curve

### Section 4: Optimization, exponential and log functions.

- Pemberton & Rau: Chapters 7, 8, & 9
- Core Econ (Ch 3.1) Leibniz – Diminishing Marginal Productivity (same as above)
- Core Econ (Ch 3.1) Leibniz – Concave and Convex Functions
- Core Econ (Ch 3.5) Leibniz – Optimal Allocation of Free Time
- Core Econ (Ch 3.4) Leibniz – Marginal Rate of Transformation
- Core Econ (Ch 6.7) Leibniz – Profit Wages and Effort (same as above)
- Core Econ (Ch 7.3) Leibniz – Average and Marginal Cost Curves (same as above)
- Core Econ (Ch 7.4) Leibniz – Isoprofit Curves and Their Slopes
- Core Econ (Ch 7.5) Leibniz – Profit Maximizing Price (same as above)
- Core Econ (Ch 7.6) Leibniz – Marginal Revenue and Marginal Cost (same as above)
- Core Econ (Ch 8.5) Leibniz – Gains From Trade

### Section 5: Matrix algebra

Lecture 5: Mathematica (nb)

Lecture 5: Powerpoint

Lecture 5b: Mathematica (nb)

Lecture 5b: Powerpoint

### Part 6: Functions of several variables, differentiation, chain rule, partial derivatives, Hessians, constrained optimization

Lecture 6: Mathematica (nb)

Lecture 6a: Mathematica partials (nb)

Lecture 6b: Mathematica regression (nb)

- Pemberton & Rau: Chapters 14, 15, 16 & 17
- Core Econ (Ch 3.7) Leibniz – Mathematics of Income and Substitution Effects
- Core Econ (Ch 4.4) Leibniz – Social Preferences and Altruism
- Core Econ (Ch 8.6) Leibniz – Shifts in Demand and Supply (same as above)

### Part 7: Basic integration and applications to statistics

Lecture X: Mathematica (nb)

- Pemberton & Rau: Chapters 19 & 20
- Core Econ (Ch 8.5) Leibniz – Gains From Trade (same as above)

## Software Downloads

*Mathematica*

*Mathematica *is software that is used for a wide variety of mathematical and economic purposes including running simulations, solving linear algebra problems, performing regression analysis, building models, to name only a few. *Mathematica* is incredibly powerful, and will help you to check through taking derivations, solving integrals, examining non-linear problems, and graphically displaying your work. We will only begin to touch on what *Mathematica* can do.

You can download *Mathematica *for free at http://www.jmu.edu/computing/download/.

#### Required Readings

Mathematica Solutions to Economics Site

*R *(just “*R*“)

*R *is free software used for statistical computing and graphics. While *SAS* is very powerful software for running prepackaged econometric estimations, *R *can perform many advanced features that you cannot easily do in *SAS*. To be fair, *SAS* is probably able to do almost everything we are going to do with R, but as an experienced user of *SAS* I can tell you that it can be like trying to hammer a nail with a screwdriver to do the same work in *SAS* that you can do in *R*. We are only going to scratch the surface of what you can do with *R*, but I hope that you are able to apply what you learn here beyond this course. *R* is open-source software, meaning it is free for you to use for almost any purpose (except redistribution in many cases) and on any platform (Mac, PC, Linux). For those considering graduate work in economics or another mathematically inclined field, you will be able to use *R* without the restriction of having to pay for it. *SAS* is very expensive, and is not provided by many employers. The primary benefit of *R* is the community of open-source programmers who help expand the software. We will use *R* to experiment with algorithms, matrix manipulation, and Monte Carlo simulation.

#### Required Readings